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not clearly describe its financial position to shareholders and analysts (Bratton 2002, Mack 2002). Other than this, the managers and auditors made clever use of accounting and auditing loopholes to show a distorted picture of earnings to show a favorable portrayal of its financial performance (Healy 2003). Starting from 1997 until its collapse, the main objective of Enron's accounting and financial operations were to show an inflated picture of reported income, cash flow and asset values and a deflated picture of liabilities (Bodurtha 2003). All this constituted the practice of feeding investors what they wanted to hear: They wanted to see that the company they had invested in was realizing high rates of returns, and Enron provided them with that.

It is generally felt that accountants are operating in the best interests of their own firms and agencies and the firms that they work for, rather than operating to update the public ethically and correctly. If financial accounting is regulated, this prevents any organization and accounting and auditing firm to conceal the facts about the firm and its financial standing from the general public. By regulating financial accounting, firms and their accountants are being forced to be more frank and forthright regarding their financial dealings and depicting their accurate financial position.

The most critical justification to regulate accounting standards, is to shield the investors. Be it a publicly listed firm, or a firm that offers the majority of its shares to its employees, both have to be safe guarded form deceitful practices. This is very critical and the main reason why the government and regulatory authority have moved to regulate accounting standards and practices. It has been demonstrated by incidences in the past that not having robust accounting procedures in place and implemented, can only lead to fraudulent practices on the part of firms and corporations.

There are divided opinions pertaining to the theories to regulate accounting standards. In spite of this, despite the divided opinions, the opinion to regulate accounting firms presents a robust case. It is not only the conscientious action to take, but it will also protect investors from firms and potential fraud. By failing to regulate accounting standards, rules and practices there will only be room for mistrust in the accounting system.

放松管制会导致传播准确的信息吗?——WILL DEREGULATION RESULT IN THE DISSEMINATION OF ACCURATE INFORMATION?

For shareholders to make the decisions necessary for investment, they should possess sound financial information. This is why regulations are necessary to control the information that is provided to shareholders (Blundell 2004). It is for this reason that auditors have been appointed to make sure that the information present in financial statements should be dependable and have been ready in accordance with generally accepted accounting principles (GAAP).

The foregoing discussion shows that while some individuals believe that enforcing regulations only averts the development of improved accounting standards, decreases the accountability of professional organizations and raises investors' financial risk, arbitrarily imposing regulations is also a problem. With randomly enforced rules, attention is no longer given to whether the accounting standards result本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。